The Liberal Democrat Manifesto 1997

The problem: Despite the current pre-election mini-boom, the fundamentals of Britain's economy remain weak. We continue to be held back by instability in economic management, an underskilled labour force and chronic under-investment. Britain continues to consume too much and invest too little.

Our commitment: Liberal Democrats will lock in economic stability, encourage saving and promote enterprise. We will raise the quality of Britain's workforce through additional investment in education and training. As part of our strategy to build a sustainable economy, we will shift the burden of taxation from employment to the depletion of natural resources. Our priorities are to:

• Cut taxes on things we want to encourage, like jobs, by taxing pollution instead. This will not mean more tax, it will mean taxing differently.
• Build environmental objectives into every government policy.
• Set tough targets to cut energy waste, reduce traffic congestion and control pollution.

We will:

• Set tough new targets for the reduction of traffic pollution and waste. This will help reduce global warming, cut air pollution and prevent waste. Our targets include cutting carbon dioxide emissions (the main cause of climate change) by 30 per cent from the 1990 level over the next 15 years.
• Cut VAT and taxes on jobs, and make up the difference by taxing pollution instead. This will help create more jobs and a better standard of living.
• Adopt a Green Action Programme. We will set targets for sustainability and biodiversity, to be met by central and local government. We will measure these by using new indicators of quality of life, progress and wealth. The Prime Minister will report to Parliament each year on the country's success in meeting these environmental targets.
• Protect the local environment. We will pass stronger laws to conserve the countryside. We will cut road congestion and help local Councils make Britain's towns and cities healthier and cleaner places to live.
• Improve the way environment policy is made. Environment policy is currently buried, with housing and local government, in a huge single Government Department. We will put environment and energy policy within a separate, new department and ensure that all government departments and agencies pursue environmentally-friendly policies. We will give the Environment Agency stronger powers to enforce compliance with environmental laws.

Transporting people, tackling pollution
Travel delays and road congestion cost billions of pounds, and pollution damages the health of millions of people.

We will:

• Invest in public transport by building new partnerships with the private sector. We will enable Councils to introduce road pricing in the most congested urban areas and use the money to support clean and rapid public transport, and to improve cycle and pedestrian access. We will retain London Underground in public ownership and give it the right to seek private finance for new investment without an assured government guarantee.
• Treble the freight and double the number of passengers carried on Britain's railways by the year 2010. We will strengthen the powers of the rail regulators. We will require Railtrack to meet targets for greater investment and increased passenger and freight traffic. We will withhold public subsidies from Railtrack if the targets are not met and, in the case of persistent failure, use the funds to reacquire a controlling interest in Railtrack. We will provide for legislation enabling this.
• Encourage people to drive more fuel-efficient cars by cutting the annual car tax, from £145 to £10 for cars up to 1600cc, over the period of the next Parliament, funded by gradually raising the duty on fuel by approximately 4 pence per litre. Under our proposals, a person with a typical family car could drive up to 23,000 miles per year and still be better off - even in rural areas, where the average motorist only drives 11,700 miles a year. We will reform tax relief on company cars to encourage smaller cars and give people new incentives to use public transport for getting to work.
• Reduce the need to travel. We will reform the planning system so that people have easier access to shops, offices and facilities, and promote the use of information technology to decentralise work.

Warmer homes, saving energy
Official government figures show that half the energy used in Britain is wasted. This pushes up fuel bills, worsens pollution and speeds up global warming.

We will:

• Cut fuel bills and make homes warmer. We will launch a National Homes Insulation programme to end fuel poverty starting with the 2 million lowest income households. Our proposals will be funded by the Energy Saving Trust and the energy supply companies. This will save these households an average £85 per year and reduce global warming emissions. By contrast, cutting VAT on fuel bills to 5 per cent would save the average household only £19 per year.
• Cut taxes on people by taxing pollution instead. To encourage energy saving, we will gradually introduce a 'carbon tax' on fossil fuels, using the funds raised to cut VAT and employers' National Insurance Contributions (the tax on jobs). This is a tax switch, not a tax rise, and will be phased in gradually.
• Improve energy efficiency. We will bring in new minimum standards for the energy efficiency of products, buildings and vehicles. We will cut VAT on energy conservation materials to 8 per cent - the same as for energy supplies.
• Promote renewable sources of energy and combined heat and power schemes. We will shift funds from nuclear research into decommissioning and nuclear waste management, and support research for renewable energy sources. We will not provide any government subsidies for nuclear generation. We support on-site dry storage of nuclear waste, pending the long-term development of safe alternatives. Nuclear stations will not be replaced at the end of their design life.

Protecting Britain's heritage
Britain's natural environment and heritage are being gradually destroyed.

We will:

• Clean up Britain's rivers and beaches and ensure that the costs of investment are spread fairly. We will require water companies to contribute to the cost of national environmental projects. We will reduce the need for new water developments by setting targets to reduce leakage and by promoting efficiency in water use. We will introduce a fairer system of charging for water and require water companies to share excess profits with their customers through rebates or investments in environmental improvements. We will end, within 10 years, discharges that cause unnecessary water pollution.
• Tackle marine oil pollution. We will implement tougher rules on shipping safety and bring forward the designation of marine high risk areas.
• Reform land use planning. We will make protection of the natural environment a major feature of the planning system through a new Wildlife Act. This will improve protection of National Parks, Heritage Coasts, Sites Of Special Scientific Interest and Areas of Outstanding Natural Beauty.
• Green the countryside. Our proposed new Countryside Management Contracts will help farmers to protect vital habitats and convert to more environmentally-friendly farming methods. We will use tax and planning reforms to protect rural areas, encouraging development on derelict land sites rather than green fields.

Thinking globally, acting locally
Most people understand the importance of thinking globally and acting locally. They want to play their part in protecting the environment. Government should help them do so.

We will:

• Encourage the manufacture of products that are easier to repair, reuse or recycle. We will introduce deposit refund schemes and back EU-wide standards for product design, energy efficiency and reuse.
• Help people to choose environmentally friendly products. We will press for comprehensive and understandable EU-wide ecologically friendly and energy efficient labelling schemes.

Promoting animal welfare
The way a society treats animals is a measure of its civilisation.

We will:

• Promote animal welfare. We will set up a compulsory national dog registration scheme. We will halt the trade in endangered species as pets. We will promote and extend training and qualification for those who work with livestock. We will insist on the enforcement of maximum time limits and for transporting live animals in the EU, a stricter timetable for banning veal crates and improved rearing conditions for pigs and chickens across the EU. We will create an Animal Protection Commission to enforce animal welfare laws and improve animal welfare standards. We will ban animal testing for cosmetics, weapons and tobacco products. We will review the law in order to reduce the use of animals in scientific experiments and seek the development of alternatives.
• Protect wild animals. We believe that the issues of hunting with hounds and coursing should be decided by free votes in the House of Commons. We will ban snares and leg hold traps. We will press for stronger international laws to protect endangered species. We will ban the importation of products derived from threatened wild animals.

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